Bernstein: Bitcoin mining companies’ hashrate trading prices are 90% lower than AI data centers

Investors are realizing that bitcoin miners are well-positioned to get into the AI ​​game, according to a new report from Bernstein. By some measures, bitcoin miners are trading at a 90% discount to traditional data centers, Bernstein analysts note in their newly published Blackbook, an annual in-depth look at cryptocurrencies. However, that discount may not last. Core Scientific, a miner that has embraced the AI ​​transformation, saw its shares rise nearly 300% in 2024. “Bitcoin miners find themselves in a unique position where they have disproportionate ‘access to power’ in a power-constrained world,” the analysts wrote. “This access to ‘ready’ cheap power, combined with data center capacity, makes bitcoin miners attractive partners for AI cloud providers looking to accelerate time to market.” It can take up to four years for brand new data centers to be connected to the grid, in part because new power-hungry bitcoin mines and AI data centers clog the queue, the analysts said. What’s more, harnessing energy from existing bitcoin mines could cut that time by 75%. Analysts say that on a per-megawatt basis, traditional data centers are valued at $30 million to $50 million per megawatt. Meanwhile, Bitcoin miners are valued at $2 million to $4 million per megawatt. “We believe that the market underestimates the value of ‘power access’ and that miners face challenges due to the cyclical fluctuations of Bitcoin. Therefore, diversification into AI data centers will enable miners to trade closer to their potential as ‘energy’ assets.” (DL News)